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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: March 24, 2025
Report #:2411-3835
TITLE
Approval of an Amended Funding Agreement with the Santa Clara Valley Transportation Authority (VTA) for 2016 Measure B Bicycle and Pedestrian Education and Encouragement Program Funding; CEQA status – not a project.
RECOMMENDATION
Staff recommends that Council authorize the City Manager to execute an amended and restated funding agreement with VTA for the 2016 Measure B Bicycle and Pedestrian Education and Encouragement Program through March 2047 (the life of Measure B).
BACKGROUND
On November 8, 2016, Santa Clara County voters passed 2016 Measure B1 (“Measure B”), a 30- year, half-cent sales tax measure funding transportation projects. Collection of the tax revenue began on April 1, 2017. The measure funds projects in nine program areas. The Bicycle and Pedestrian Program2 is allocated 3.97% of tax revenue to eliminate gaps in active transportation networks and to make walking and bicycling safer and more convenient. The program has three sub-categories: Planning Studies, Capital Projects, and E&E.
The current agreement with VTA for the Bicycle and Pedestrian Program E&E Category funds was signed by the City Manager on October 29, 2019 and signed by VTA on November 13, 2019.
This agreement expires on June 30, 2025. The amended and restated funding agreement (Attachment A) for 2016 Measure B Bicycle & Pedestrian E&E Program Category funds will go through the life of the measure until March 31, 2047 – reducing need and effort to renew and extend the current funding agreements every two years. This new agreement also includes new 1 VTA 2016 Measure B, https://2016measureb.vta.org/
2 VTA 2016 Measure B, Bicycle and Pedestrian Program,
https://2016measureb.vta.org/?transactionType=award&grantee=&project=&category=Bicycle%20%26%20Pedest rian
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2016 Measure B standard language. Approval and execution of the funding agreement with VTA is required for the City to access any of the Bicycle & Pedestrian funds.
ANALYSIS
E&E funds can be used, with VTA’s approval, for activities such as: organization and implementation of Safe Routes to Schools programs and activities, education of walking and bicycling skills to adults and children, and purchase and distribution of bicycle helmets, lights, reflective vests, or other bicycle/pedestrian safety equipment to be used in education/encouragement activities. Funds are only available for activities or projects for individuals who live, work, or attend school in Palo Alto. Funds may be used for direct costs or staff time costs. Funds may not be used for capital improvements. The City has previously utilized this funding for reimbursement of staff time and is currently using funding for K-5 bicycle and pedestrian safety educational programming.
The City’s maximum funding allocation for each fiscal year (July 1st through June 30th of the following calendar year) is based upon an annual population-based distribution formula (Attachment A, Section II, Paragraph 5). The County of Santa Clara has a separate agreement for these funds that also address the sharing of countywide funds/activities with VTA. The City must submit a work program and annual progress report3 as part of the funding agreement.
Upon execution of the funding agreement, the City will continue to receive annual allocations from Measure B.
FISCAL/RESOURCE IMPACT
The City receives approximately $50,000 annually in E&E funds, and the VTA releases its annual funding allocations in two-year cycles. FY 2024 and 2025’s allocation has been budgeted to help fund K-5 bicycle and pedestrian safety educational programming as previously mentioned, and future funding is also earmarked for this purpose.4 The VTA has yet to announce its allocations for FY 2026 and FY 2027. Depending on the timing of the announcement, staff will request to appropriate the additional funding through the FY 2026 budget process or the FY 2026 mid-year budget review. No additional budgetary action is required at this time.
ENVIRONMENTAL REVIEW
Approval and execution of the funding agreement are actions that do not meet the definition of a project for the purposes of CEQA, under Public Resources Code Section 21065 and CEQA 3 Palo Alto Bike/Pedestrian Education & Encouragement Program, VTA, https://2016measureb.vta.org/projects/palo-alto-bike-pedestrian-education-encouragement-program 4 City Council, February 24, 2025; Agenda Item #9; SR #2412-3864, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=141736ca-9e37-4a2f-a38c-aeba5c8e1048 6 0
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Guidelines Section 15378(b)(5), because they are administrative governmental activities which will not cause a direct or indirect physical change in the environment. Each project funded via Measure B Bicycle and Pedestrian E&E funds will be reviewed for compliance under CEQA.
ATTACHMENTS
Attachment A: 2016 Measure B Bicycle & Pedestrian Education and Encouragement Program Funding Agreement
APPROVED BY:
Lily Lim-Tsao, Interim Chief Transportation Official